Obama jokes about Australia-New Zealand rivalry with Turnbull

Malcolm Turnbull and Barack Obama have been caught having another off mic exchange with the US president's joke about the trans-Tasman rivalry falling flat.

The leaders were both in the Philippines attending the APEC summit yesterday when Mr Obama asked his Australian counterpart who he would be meeting on the sidelines of the conference, The Sydney Morning Herald reports.

When Mr Turnbull said that he would be seeing New Zealand Prime Minister John Key the president quipped, "So you actually, er, you actually talk to the New Zealanders?"

"I do. He's a real role model," Mr Turnbull replied as the joke soared over his head.

"Nah, he's a wonderful guy," Mr Obama replied.

"He and I have become good friends and not just because we play golf together."

The New Zealand leader regularly holidays in Hawaii, where Obama was born and still visits.